LICENSE APPEAL COMMISSION

Day 9 of the City Council Budget hearings kicked off with a quick, 20 minute hearing with the License Appeal Commission. With few questions asked and a small pool of aldermen present in the Chambers, Commission Chairman Dennis Michael Fleming gave a brief breakdown of cases heard over the past year, how fees are collected, and his annual salary.

Submitted written testimony.

Attendance: Chairman Carrie Austin (34), Vice Chairman Jason Ervin (28), Leslie Hairston (5), Patrick Daley Thompson (11), Raymond Lopez (15), Michael Zalewski (23), Ariel Reboyras (30), Scott Waguespack (32), Gilbert Villegas (36), Anthony Napolitano (41), James Cappleman (46) 

The Commission hears appeals from businesses and individuals seeking a review of decisions of the Department of Business Affairs and Consumer Protection and the Local Liquor Control Commission. Fifty-two appeals were filed last year: 83% of those cases were applicant cases related to denied liquor licenses, the rest were disciplinary. The Commission has one full time position. Chairman Fleming said he works an average of 12 hours a week with an hourly rate of $125.

DEPARTMENT OF FAMILY AND SUPPORT SERVICES 

Questions about mental health programs for the City’s homeless population and suggestions on how DFSS could cut waste by changing how it allocates resources to delegate agencies took the brunt of the roughly two hour DFSS hearing with newly appointed Commissioner Lisa Morrison Butler. Having only assumed the office 50 days ago–a point she made repeatedly–Butler had several members of the DFSS staff back her testimony with data and background when asked statistic-related questions or about specific programs DFSS oversees.   

Attendance: Chairman Carrie Austin (34), Vice Chairman Jason Ervin (28), Pat Dowell (3), Leslie Hairston (5), Gregory Mitchell (7), Michelle Harris (8), Anthony Beale (9), Patrick Daley Thompson (11), Raymond Lopez (15), David Moore (17), Matt O’Shea (19), Rick Munoz (22), Michael Zalewski (23), Michael Scott, Jr. (24), Walter Burnett (27), Chris Taliaferro (29), Ariel Reboyras (30), Milly Santiago (31), Scott Waguespack (32), Deb Mell (33), Carlos Ramirez-Rosa (35), Gilbert Villegas (36), Emma Mitts (37), Nick Sposato (38), Anthony Napolitano (41), Brendan Reilly (42), Michele Smith (43), John Arena (45) James Cappleman (46), Harry Osterman (48), Deb Silverstein (50). 

Submitted written testimony.

Several aldermen asked why there isn’t more coordination between DFSS and the Public Health Department when it comes to mental health programs geared towards the city’s homeless population. 

A frustrated Ald. Ariel Reboyras (30) pounded his fists on the desk to lament the lack of programming and suggested DFSS and the City’s Health Department pool their resources. “This will alleviate the problems we have in jails,” Reboyras explained. He recalled an incident “four or five years ago” where he had to personally help a homeless man in his ward find shelter because resources were scarce. He said he bought the man a bottle of vodka, shared a drink on the street because, as Ald. Reboyras said “ if you can’t help him, you might as well join him”, and eventually helped the man find shelter at the local YMCA. “These are little things that no one knows the alderman does.” 

According to the City's last “point-in-time” count, there are approximately 6,700 individuals living on city streets or in city shelters;19.4% of those counted suffer from mental illness, 22.7% suffer from substance abuse. 

When Ald. Michele Smith (43) asked Butler to detail some of the main obstacles to find shelter for those who don’t suffer from either ailment, and if Single-Room Occupancy units might help mitigate those obstacles, Butler deferred the question to a member of her staff. Deputy Commissioner Alisa Rodriguez said, “to some extent,” saying affordability is more important.     

Butler said she is trying to collaborate with other city departments to make sure funding is spent efficiently. She said she has already had two meetings with Health Commissioner Julie Morita, adding that implementing new programs geared towards the City’s homeless population take time, because a relationship of “trust” between government agencies and the homeless take time. “They don’t have to go into shelter and they don’t have to take the services,” Butler explained. Unlike New York City, Chicago doesn’t have a court mandated right to shelter; all programs geared towards the City’s homeless population are on a voluntary basis.

As for ways DFSS could cut spending, Ald. Scott Waguespack (32) pointed to a Chicago Jobs Council survey that found DFSS had spent $350,000 in fees associated with the single-ride Ventra cards delegate agencies hand out to to help low-income job seekers get to interviews or students traveling to school. Calling the fees paid to Ventra owner Cubic “inappropriate”, Ald. Waguespack asked that DFSS look into the issue. “I don’t think anyone realized this was going on except Ventra seeing their bottom line increase to our detriment.”

DFSS Managing Deputy David Wells told Waguespack the department could work better with CTA as well as CPS to see if there is a way to “alleviate” that issue.

Another vocal member of the Progressive Caucus, Ald. John Arena (45) said he didn’t understand why DFSS needs its own Human Resources team when the City already has a Department of Human Resources. He brought up a similar issue during the Department of Public Health hearing. Going line-by-line listing the titles for the HR division within DFSS, Ald. Arena said the $500,000 appropriation didn’t make sense. ”I’m seeing redundancies here and within the Department of Health and that’s troubling to me. We are asking for the largest property tax increase and we’re not looking at our budgets and departments to say, ‘Where can we reduce redundancy?’”

Reminding Ald. Arena that she is new to the job, Butler said she didn’t have an immediate answer for him, and will have a better update on how the department can be more efficient after she works with an independent consulting agency, The Civic Consulting Alliance.

Other figures revealed in testimony:

• DFSS provides direct assistance to more than 300,000 Chicagoans annually through a citywide network of more than 300 community-based delegate agencies.

• The 2016 DFSS allocation is $348 million, representing a 4.7% increase over the 2015 allocation

• $170 million dollars will be invested in Head Start, Early Head Start and Child Care programs, including $15 million as part of the Early Head Start Child Care Partnership Grant

• DFSS is rolling out a P-3 Grant Pilot Program for teen mothers and their children. The initiative will provide mothers with training, job opportunities, and the ability to finish their high school degrees.

• 24,679 Chicago youth participated in the City’s employment initiative, One Summer Chicago (OSC), representing a 70% increase from 2011. DFSS wants to expand the program to 25,000 in 2016.

• $61,252,572 will be allocated to homeless programs, expanding the Mayor’s Plan 2.0 to End Homelessness.

• By the end of 2015, DFSS expects to open the City’s first domestic violence shelter in more than ten years. The two-story shelter will have 40 beds and the capacity to serve more than 100 families in 2016.

DEPARTMENT OF TRANSPORTATION

A lengthy, and at times, contentious hearing with the Chicago Department of Transportation focused a significant amount of time on a budget item close to aldermen’s hearts: menu money and the rising cost of infrastructure improvements throughout the city. CDOT is asking for $576 million in this year’s budget: about $28 million more than last year. Commissioner Rebekah Scheinfeld fielded questions and praise for more than three hours Thursday.

Submitted written testimony.

Attendance: Chair: Carrie Austin (34), Joe Moreno (1), Pat Dowell (3), Leslie Hairston (5), Roderick Sawyer (6), Gregory Mitchell (7), Michelle Harris (8), Sue Sadlowski Garza (10), Patrick Daley Thompson (11), George Cardenas (12), Marty Quinn (13), Ed Burke (14), Raymond Lopez (15), David Moore (17), Matt O’Shea (19), Howard Brookins (21), Ricardo Munoz (22), Michael Scott Jr (24), Walter Burnett Jr. (27), Jason Ervin (28), Chris Taliaferro (29), Ariel Reboyras (30), Scott Waguespack (32), Deb Mell (33), Carlos Ramirez Rosa (35), Gilbert Villegas (36), Nicholas Sposato (38), Anthony Napolitano (41), Brendan Reilly (42), Tom Tunney (44), John Arena (45), James Cappleman (46), Ameya Pawar (47), Harry Osterman (48), Deb Silverstein (50) 

A small argument broke out between Ald. Brendan Reilly (42), and Ald. Ariel Reboyras (30) and Ald. Joe Moreno (1). Throughout budget hearings, Reilly has pressed commissioners to justify a budget increase over the previous year, and asked them to detail increased expenses and additional positions. He devoted his full 10 minutes of question time to asking about overtime pay, why aldermen should pay for Americans with Disabilities Act compliant ramps when it’s in CDOT’s budget, and new positions added.

“Where in the line item is funding for the Active Transportation Alliance?” Reilly asked. The Alliance advocates for greater access to, and use of, public transportation, biking, and walking. CDOT pays the Alliance a consulting fee using a portion of federal grants dedicated to safety, Scheinfeld said. 

“They’re an advocacy organization as much as they are an education organization,” Reilly pushed back, saying there should be a delineation. “There are some members of this Council who are targeted by these folks in their advocacy when a bike lane is resisted or changes are proposed… I don’t believe tax dollars should be used to subsidize political activity, period.”

“What does this have to do with CDOT?” Ald. Reboyras said off-mic, “They do wonderful work.” Reboyras serves on the Alliance Board of Directors. 

“Maybe you could speak during your time, Alderman Reboyras,” Reilly retorted.

Ald. Joe Moreno (1) also voiced his support for the Alliance to the whole chamber, off-mic.

“Great. Good for you, Joe,” Reilly replied.

Chairman Carrie Austin reprimanded the group, “No outbursts.”

By the end of the exchange, Reilly’s 10 minutes were up, and several aldermen went to Reboyras’ desk to speak with him. 

Ald. Tom Tunney (44) wrangled with Scheinfeld over quality control on CDOT projects involving private contractors, who Tunney says sometimes screw up and have to do the job twice. He pointed to bad concrete pours and pothole fills. “This comes up all the time. Who is watching these privates on behalf of the taxpayer, and making sure that you’re in there once, you’re doing the job right, and move on?” Tunney asked.

Public way inspectors and CDOT’s permit office have oversight, Scheinfeld says, and the department aims to “minimize disruption,” but she didn’t discuss how screw-ups were punished. Contractors have to re-do projects if it’s done incorrectly but only within the warranty period, she added. Tunney used the rest of his allotted time to drive the point home, and suggested they meet after the hearing to figure out how to fine contractors for mistakes outside the warranty period.   

The maligned, now revamped Chicago Infrastructure Trust 2.0 was also a talking point. In September, Mayor Rahm Emanuel announced the ambitious “Chicago Smart Lighting Project”, a plan to overhaul the City’s lighting without using taxpayer money. Ald Marty Quinn (13) asked whether it could save aldermen menu money. Aldermen can easily spend hundreds of thousands of dollars in menu money lighting a park or single block. The Trust has put out an RFI (Request for Information) on the project, due in November. Scheinfeld said even before the announcement, CDOT was getting unsolicited pitches from businesses.   

Scheinfeld says the department wants to find out what other revenue sources lighting upgrades could support. “Street lights are essentially real estate,” she said upgrading all the city’s light infrastructure would take a huge investment. 

Ald. Harry Osterman (48) took a shine to the idea of private, branded funding for lighting improvements. “I think that the lighting we’ve put in the last four years has probably done as much for crime reduction as a lot of other efforts, but it kills us with the menu,” he said, supporting allowing companies to pay to brand municipal assets to money for infrastructure updates. “If it’s Whole Foods or Ikea or GE Lighting and they have their sign on there, I don’t care, and I don’t think my constituents care… if we get the light there, I would be welcome to be a pilot.” 

More on how aldermen have spent menu money in our previous report.

Ald. George Cardenas (12) echoed Osterman’s sentiment, saying dealing with CDOT is “very emotional” and says he has 3 states of emotion: Negative Ned, Positive Polly, and Flip Flop Freddy. He says he often begins an infrastructure project thinking CDOT won’t make it happen, then believes it will, then can’t actually pick projects from the menu because they’re too expensive. “Shopping with CDOT is like shopping at a Bloomingdale's, you like what you see, but you can’t afford it… I know inflation is not the problem. I know stagflation is not the problem, but our dollars are worth half of what they were 8 years ago.”

The $1.3 million allocation for each alderman “doesn’t buy anything anymore,” Cardenas said, adding he won’t finish lighting McKinley Park before he retires. Scheinfeld says CDOT always tries to help aldermen stretch their dollars as far as possible, sympathizes with cost hikes, and says rising menu prices are updated based on actual costs. 

Funding is also a problem for the expansion of Divvy, which Scheinfeld couldn’t give a conclusive timeline on for full expansion to the whole city. While aldermen are thrilled with the program’s growth over the past 2 years, others are clamoring for more. Ald. Matt O’Shea (19), whose ward is on the far South West Side, hasn’t seen Divvy reach his ward yet. Neighboring Ald. Anthony Beale (9) also asked about South Side expansion. Sheinfeld said they’re working on finding more federal funding, and want to reach every edge of the city. 

Other figures revealed in testimony:

• $5 million total is allocated for the Shared Sidewalk program for the next couple years, Scheinfeld said. Residents chip in $4 per square foot for sidewalk repairs, seniors even less, and CDOT covers the rest. Ald. O’Shea (19) said signups in his ward topped out in early January last year.

• The department expects to have 163 vacancies going into next year–fewer than listed in the budget.

• CDOT will spend $3.1 million on bike lanes, totaling up 100 miles of the lanes across Chicago by the end of fall.

• The budget office estimated CDOT had the highest absenteeism rate of the City’s big departments - 8.8%. Scheinfeld expects $2.5 million in savings from reduced absenteeism.

• 40% of Chicagoans commute to work on bikes or by public transportation.

Questions surrounding the Chicago Police Department’s hiring practices, especially how it relates to minority hiring and the use of psychological evaluations, dominated the two hour hearing with Human Resources Commissioner Soo Choi.

Budget Vice Chair Jason Ervin (28) suggested CPD do away with the psychological exam, noting a “historic problem” of a disproportionate number of African Americans scoring poorly on the tests, despite receiving high marks on the written exam.

“We have heard the concern for a number of years,” Commissioner Choi said.

CPD hires an independent contractor to administer its written and psychological tests. But according to Ald. Willie Cochran (20), the contract is 20 years old.

“They have been providing that same test, over, and over and over again, no revisions or no changes in that,” Ald. Cochran explained. “Our society has changed and it doesn't suit well for us having not looked at other tools and instruments that are out there.”

But the Department of Human Resources has no authority over the RFP process. It’s a point Commissioner Choi made repeatedly, even as she agreed with the aldermen’s concerns. “Taking a look at the psychological exam is certainly warranted, and I believe that the [police] superintendent has also expressed that same desire.”

Former police officer Ald. Anthony Napolitano (41) suggested the test be done in-house with a scantron sheet. But Commissioner Choi said that kind of testing is “a complicated process” that requires “an appropriate entity to develop and administer the exam”.

In preparation for the upcoming Police Officer exam next February, the Human Resources Department is working with CPD and David Axelrod’s former public affairs firm, ASGK, on developing a recruiting and outreach campaign focused on increasing the number of minority applicants. The last time the CPD administered the test in 2013, more than 14,500 people sat for the exam and 12,713 made it to the eligibility list. That’s a significant increase from the 2010 recruitment pool of 8,621. Choi said the city would like to see those numbers grow.

South and West Side aldermen used the Department of Planning and Development hearing to demand more housing and economic development in their underserved wards.

Morning attendance: Pat Dowell (3), Will Burns (4), Leslie Hairston (5), Roderick Sawyer (6), Gregory Mitchell (7), Michelle Harris (8), Anthony Beale (9), Sue Sadlowski Garza (10), Patrick Daley Thompson (11), Raymond Lopez (15), David Moore (17), Ricardo Munoz (22), Michael Zalewski (23), Michael Scott Jr. (24), Danny Solis (25), Roberto Maldonado (26), Walter Burnett Jr. (27), Jason Ervin (28), Chris Taliaferro (29), Ariel Reboyras (30), Milly Santiago (31), Scott Waguespack (32), Deb Mell (33), Carrie Austin (34), Carlos Ramirez-Rosa (35), Gilbert Villegas (36), Emma Mitts (37), Nicholas Sposato (38), Marge Laurino (39), Pat O'Connor (40), Anthony Napolitano (41), Michele Smith (43), John Arena (45), James Cappleman (46), Debra Silverstein (50)

“I want to share my frustration with the department over the last 16 years and not getting anything tangible,” South Shore Ald. Leslie Hairston (5) opined, noting that while developers were “stepping over each other” to build in the City’s more affluent neighborhoods, she “can’t even get a phone call back” from developers. Hairston has spent the last two years trying to get a supermarket chain to open a store in the South Shore after the neighborhood’s only grocery store went out of business.

“Without the muscle of the City and the Mayor, this [kind of development] isn’t going to happen in our communities,” Hairston told newly appointed DPD Commissioner David Reifman.

Yesterday’s hearing was the first time aldermen had a chance to publicly speak to Reifman. He was recruited by the Mayor from global law firm DLA Piper in August to replace Andrew Mooney, who retired.

Due to time constraints, Reifman didn’t get a chance to read his statement, but we have uploaded a copy.

Raising similar concerns about the inequity of development in the City, Ald. Pat Dowell (3) told Reifman it was his and the Mayor’s responsibility to “use the power of the office” to look beyond the central business district when they are courting businesses and developers to relocate to Chicago. And Far West Side Ald. Chris Taliaferro (29) said his Austin neighborhood is in desperate need of housing, as he continues to see an exodus of businesses and residents to the suburbs.   

Downtown aldermen Brendan Reilly (42) and Walter Burnett, Jr (27) had concerns of their own. Recalling a time when DPD was mostly focused on neighborhood development, Ald. Reilly said he and the Mayor worked “really hard to promote development downtown,” and expressed concern that the new Affordable Requirements Ordinance (ARO) would stifle that growth.

The reforms to the ARO the City Council passed last year increase the number of required affordable housing units. 10% of units built on land sold by the City are required to be affordable; 20% if financial assistance is provided. Developers also have the option of paying an in-lieu fee per required unit depending on where it’s built. For downtown and high-income areas, the price ratchets up this month.

“I’m already seeing an impact on residential proposals in the central business district,” Ald. Reilly told Commissioner Reifman. “Meaning, that due to slimmer margins, some of these projects are falling out of queue because they simply can’t get financing.”  

“Do you have any insights for us, whether the ARO needs to be further tweaked, changed to address that sensitivity?” Reilly asked, adding that he knows of 6 projects that won’t move forward because they won’t make the October 13th filing deadline, which is when the new requirements take effect. But Reifman said it was too early to talk revisions and suggested another conversation down the line, “I think overall that ordinance achieves a balance for what we need as a City.”

Like Ald. Reilly, Ald. Burnett has seen a significant number of high-density, mixed-use residential developments break ground in his ward, which includes the recently-designated landmark, Fulton Market. He was mostly concerned about the growing backlash from residents who oppose large scale development. “It’s just getting crazy with the NIMBYs,” Burnett said, suggesting DPD commission a video touting the benefits increased density has on keeping housing prices low by growing the City’s housing stock.

TIF reform was a recurring discussion topic, with aldermen repeating many of the same points throughout the hearing. Ald. Michael Scott, Jr. (24) and Ald. Burnett suggested DPD allocate more TIF dollars to employment programs and business development.

“When we voted for these TIFs [...] we told folks the TIF money would be used to get jobs in our community. Not just for companies to be retrained and all of that stuff,” Burnett said.

Suggesting DPD was the wrong department to oversee TIF money, Burnett floated the idea of having the Department of Family and Supportive Services in charge of the neighborhood funds because “they are giving people jobs.” Burnett said he’s considering drafting an ordinance explicitly detailing what projects TIF money can be spent on.

On day two of budget hearings, alderman heard details on how the 311 system would be privatized, one commissioner said city departments were ordered to make 10% across-the-board cuts, Clerk Susana Mendoza wants to create a special parking pass for Realtors, and Treasurer Kurt Summers is hoping to make money from idle cash.

Morning Attendance: Joe Moreno (1), Brian Hopkins (2), Leslie Hairston (5), Gregory Mitchell (7), Michelle Harris (8), Sue Sadlowski Garza (10), Patrick Daley Thompson (11), Marty Quinn (13), Raymond Lopez (15), David Moore (17), Derrick Curtis (18), Willie Cochran (20), Howard Brookins (21), Ricardo Munoz (22), Jason Ervin (28), Ariel Reboyras (30), Milly Santiago (31), Deb Mell (33), Carrie Austin (34), Emma Mitts (37), Nicholas Sposato (38), Anthony Napolitano (41), Brendan Reilly (42), Michele Smith (43), Tom Tunney (44), John Arena (45), James Cappleman (46), Harry Osterman (48), Joe Moore (49) 

CITY CLERK – With a statewide campaign for Comptroller around the corner, City Clerk Susana Mendoza touted her efforts to cut waste in her office by reducing overtime spending and streamlining vehicle sticker sales. The Clerk’s Office has a $10M budget and generates about $122M in revenue to the city through vehicle sticker sales. Since the City implemented year-round vehicle sticker sales this year, City Clerk locations saw an 85% reduction in wait times, according to Mendoza’s testimony.

Overtime in the City Clerk’s Council Division, the office that handles legislation and the City Council’s Journals of the Proceedings, is down 75% since Mendoza took office in 2010.



Clerk Mendoza said the department is bringing in an independent contractor to help find more efficiencies to work toward a paperless system. “Anything we can do to make our office more digital, I think is going to save a significant amount of money, and make our entire process much more streamlined.” 

Budget Chairman Carrie Austin (34), Vice Chairman Jason Ervin (28), and Vice Mayor Brendan Reilly (42) took turns leading the morning hearing, which mostly consisted of aldermen showering Mendoza with praise. Somewhat peeved, Reilly reminded his peers to stay on topic, “Let’s try and keep our comments and questions focused now on the budget request itself. I think we have done a good job praising staff. Sorry, we have other departments to be with today.”

One innovation: An ordinance Mendoza introduced to create a special vehicle sticker for Realtors that would let them park in any residential zoned parking spot during business hours (9:00 a.m.-9:00 p.m.). Mendoza estimates the new sticker would bring in an additional $900,000 annually.

Ald. Roderick Sawyer (6) suggested aldermen get a similar sticker, because they too have the same dilemma: going to community meetings in an area with permit parking. Ald. Anthony Napolitano (41) suggested the program be expanded to include construction contractors too, because they are “getting ticketed like crazy” when they park outside work sites.

Mendoza said that while she is open to expanding the program down the line to include other occupations, her office needs to see how much demand the Realtor program will net, should the City Council approve it. “We don’t want to take up too much, without having any indication of what the popularity of the program is going to be.”

Mendoza also endorsed lifting the parking ban on noncommercial pickup trucks, after aldermen told her about complaints from residents who aren’t allowed to park their pickup trucks in front of their homes. “no one tells you when you buy a pickup truck that you can’t park it on any Chicago street,” Mendoza said, expressing a willingness to work with any aldermen that wants to make that happen.

And there was no shortage of new licensing proposals at the City Clerk budget hearing. Ald. Harry Osterman (48) went so far to suggest implementing a registration and licensing program for bicycles, and Ald. Raymond Lopez (15) floated the idea of creating a license for pets. Ald. Tom Tunney (44) asked about the feasibility of having a Ventra-style machine to sell city stickers, because his office has a full-time employee at the ward office in charge of selling City stickers. Mendoza reminded him residents can buy the stickers online, but Ald. Tunney said he gets a lot of complaints from residents who didn’t realize buying guest parking passes online meant waiting 9 business days for delivery.

 

CITY TREASURER – The City’s operating portfolio, also known as working capital, contains $3B dollars, enough to keep the City running for approximately three months, according to City Treasurer Kurt Summers. Until recently, the money had been sitting in a fund untouched, losing out on the opportunity to generate increased returns, he said. “It’s like cash sitting under a mattress,” Summers explained, before outlining his plan to invest two thirds of that money, which he estimates would net the City $14-$30M in annual returns.

Summers says national standards and rating agency requirements calls for Chicago to only have enough cash on hand to keep the City running for 45 days, or approximately $1B. “We are going to manage our cash better, more efficiently, more responsibly,”

The 2016 appropriation for the City Treasurer’s office increased significantly, from $2.58M to $4.9M, and calls for 8 new positions. All of those new hires will be auditors, which are sorely needed, according Summers. “Today, we don’t have a single regulatory compliance function in this office.” Summers told the Council that all of the trades to date haven’t gone through a regulatory compliance check. “That’s a risk on a $6B dollar investment portfolio.” It was also revealed that the Deputy City Treasurer makes more money than Summers.

By altering the funding structure for his office, Summers cut the general fund allocation by 30% (from $2.36M to $1.66M), supplementing most of that revenue with funds from the O’Hare Airport Fund (from approximately $76,000 to $1.128M). Summers said this change will "put an end to taxpayers subsidizing enterprise funds", as the corporate fund generates revenue through tax dollars while the O'Hare fund gets its revenue from airport fees. 

The City Treasurer’s office is in charge of paying all credit card transactions at City-owned locations. For example, if a person parks at O’Hare Airport and pays the parking fee with a credit card, the Treasurer’s office eats the credit card fee. By the end of 2015, Summers projects his office will pay out $16.9M dollars in fees for $920M in credit card transactions, or a rate of about 2%.

But the real eye-opener was the confusion aldermen had about the different responsibilities between the Treasurer’s Office and the Department of Finance. When a few aldermen asked Summers about the City’s bonds and debt, Summers said those topics are better suited for City’s Chief Financial Officer, Carole Brown. After having to explain that a few times, Budget Chairman Austin snapped at aldermen, telling them that they should have directed those questions to Brown when she testified before the Council Monday.

And while Treasurer Summers may have ambitious plans for his office, like significantly increasing investments in local neighborhoods through small business loans and financial education programs, he didn’t have much time to convey those initiatives during the hour and a half hearing. Not only did Budget Chairman Austin tell him to skip his open testimony because it was “45 pages and too long", she rushed him several times throughout the hearing, and even complained that listening to his testimony was "like watching paint dry". (For the record, Summers’ testimony was 5 pages, but it was part of a packet with a lot of supplemental information detailing his initiatives).

Other Highlights from Summers’ testimony:

• As of September 21, the City has $629M in its reserves


• The Treasurer monitors 1,521 different fund accounts; Summers found that 408 are dormant as of last quarter (which means little to no activity since January 2014)


• The City has $389.6M in unused bond proceeds sitting in accounts dated 2010 or older. Summers says this money should be used to supplement the capital program.


• 293 fund accounts have have a balance of $0.


• The City will have $77.6M dollars in total investment income across the funds by 2016 ($30-40M more than the previous years).


• The Treasurer’s Office earned $32.2M as of August, and is on target to earn $50.8M by the end of the year.


• The 33 year-old Treasury System Summers' office currently uses is so old that that it was implemented "three mayors ago."

Afternoon Attendance - Joe Moreno (1), Brian Hopkins (2), Leslie Hairston (5), Gregory Mitchell (7), Michelle Harris (8), Sue Sadlowski Garza (10), Patrick Daley Thompson (11), Raymond Lopez (15), David Moore (17), Derrick Curtis (18), Willie Cochran (20), Howard Brookins (21), Ricardo Munoz (22), Jason Ervin (28), Milly Santiago (31), Deb Mell (33), Carrie Austin (34), Carlos Ramirez-Rosa (35), Emma Mitts (37), Nicholas Sposato (38), Anthony Napolitano (41), Brendan Reilly (42), Michele Smith (43), John Arena (45), James Cappleman (46), Ameya Pawar (47), Harry Osterman (48), Joe Moore (49)

INNOVATION AND TECHNOLOGY – On day two of budget briefings, aldermen seemed to be agreeing that the 311 system needs to change. Brenna Berman, Chief Information Officer and Commissioner of the Department of Innovation and Technology (DoIT), backed up Monday’s testimony from Budget Director Alex Holt,who said the City’s 311 system was outdated and would take $25 to $30 million to replace.

DoIT made major cuts in this year’s budget as part of the Mayor’s request for efficiencies in his administration. Berman says the Department saved $3.9 million in part by shutting down an old contract related to the city’s nearly phased-out mainframe, streamlining telecom management, consolidating licensing costs, and applying efficient systems across departments. Read her full hearing statement.

Ald. Sue Sadlowski-Garza (10) and Ald. Milly Santiago (31) asked why inputting 311 requests online sometimes took as long as 7 minutes to complete. The system’s just old, Berman said. “Chicago was the first city to launch a robust 311 system in 1999,” she explained. “It’s kind of like dog years, that’s an ancient system. It’s old. And it is just time to replace it.”

When asked what a 311 alternative would look like, Berman pointed to Philadelphia, Houston, and New York, who have taken a page out of the corporate book–they’re using customer relationship management (CRM) systems like Salesforce and Oracle to manage city services. Slow 311 logging online might also be because of ward office locations, she said. Some lack access to internet speeds sufficient for City work. Berman said several offices are currently in the process of getting network upgrades.

Ald. Brendan Reilly (42) also asked when the City will be in the position to switch to zero-based budgeting software, where every function is analyzed for needs and costs from a “zero base”, rather than comparing costs to the previous year. Berman said Budget Director Alex Holt is pushing to switch over, but it would have to be weighed against other technology investments the City needs over the next 1 to 2 years.

HUMAN RELATIONS– Providing a window into city budgeting, Commissioner Mona Noriega testified that the Commission on Human Resources was "one of many" City departments asked to make 10% cuts ahead of FY2016, but Noriega claimed the reduction will not impacted turnaround time on investigations. Questioning for Noriega lasted just over half an hour, with most spent on Noriega updating aldermen on the enforcement of the recent Ban the Box Ordinance. Starting January 1, 2015, Chicago expanded Illinois law restricting employers from using an applicant’s criminal background information to discriminate early in the job application process. The ordinance is aimed at giving former prisoners a fair chance at employment.

“We have no statistics because we have no complaints,” Noriega said, explaining the Department focuses more on spreading the word about Illinois state law and the Chicago ordinance through Chambers of Commerce, mailings, and newsletters. “Every place that we go we talk about it, and we try to get visuals out there as well. The outcomes are that we have more people who know about it, but I would always suspect that we could do more.”

Ald. Jason Ervin’s (29) questioning of Noriega bumped up against his 10 minute time limit, asking about housing and other discrimination that might not be quantified. “I think there are many employers that are discriminating and I don’t think it’s limited to Ban the Box,” she said, talking about the work to be done. There have been 206 complaints of discrimination so far this year, Noriega says. The largest category is employment discrimination, the next is public accommodations, and the third is housing. There have been 51 hate crimes reported this year, which like Ban the Box violations, Noriega says are likely underreported.

Mayor Rahm Emanuel’s property tax hike will likely continue to go up after 2018 and may not be enough to cover pension costs, the garbage fee could be amended over time, and the Chicago Police Department will again spend $100M on police overtime, according to testimony from Budget Director Alex Holt Monday. She fielded a marathon of questions from aldermen on the first day of budget hearings in Council Chambers, sitting in the hot seat for most of the six hour hearing alongside Chief Financial Officer Carole Brown and Comptroller Dan Widawsky.

Budget Chairman Carrie Austin (34) and Vice Chairman Jason Ervin (28) took turns leading the hearing, which started a little after 10:00 a.m. and concluded around 5:30 p.m.

Each alderman was allocated 10 minutes for questions, and spoke in order of seniority. It will likely be one of the best-attended budget hearings of the coming weeks. Only Ald. Will Burns (4), Ald. Ed Burke (14), Ald. Derrick Curtis (18), Ald. Emma Mitts (37), and Ald. Deb Silverstein (50) did not make an appearance. Ald. Curtis’ former campaign manager, Scott Biszewski, said Curtis got married over the weekend.

Holt, who fielded the most questions, had to sometimes answer the same ones multiple times, as aldermen came and left the chambers throughout the day. She rarely paused to refer to documentation and recited most figures and estimates from memory.

The most frequently discussed topics:

PROPERTY TAX HIKE – The proposed property tax hike will not be sunsetted or rolled back, and will need to go up after 2018, according to CFO Brown. Answering questions about a potential, sunset or rollback, Brown said proposed property tax hike will remain in place until the City’s pensions receive the "actuarially required contributions". In other words, because the new tax would be devoted to payment of police and fire pensions, pension payments would need to match the schedule set in SB777, the pension payment extension bill awaiting Gov. Bruce Rauner's signature. If the costs of payments were to go up at some point in the future, for instance because of a growing number of retirees or increased benefits, the payments would have to go up as well.



Holt also acknowledged that if SB777 is not enacted, and SB1922, which stretches out laborer and municipal worker pensions, is not approved by the Illinois supreme court, the proposed increase will not be enough. "We're going to need Plan B," she said. "We're going to have to come up with some sort of alternative."

“We’re moving forward with a budget that largely does not need support from Springfield,” Holt said, with the exception of the passage of SB777. Without it, the City’s pension obligation will jump from $328M to $550M. Holt, like Mayor Emanuel, believes the Governor will sign the bill, which has passed in both chambers of the state legislature.

Each alderman was provided a property tax breakdown for their individual ward, detailing how many homes would see a bigger property tax bill next year, and which homes would qualify for the exemption. Several aldermen asked why they didn’t get a citywide breakdown instead. A representative from the Mayor’s office circulated this citywide property tax worksheet to reporters later that afternoon.

Ald. Anthony Napolitano (41) asked what he could tell his constituents, many of whom are police and firefighters relying on a pension, about what will happen to their tax rate after 2018. 

Brown says the rate will keep climbing, but not as rapidly. “In 2020, we start paying at the actuarially required contribution, and so it’s a smaller increase, but they still increase. The City would not be in the position to roll back the property tax increase, but what we’re hoping is by doing these gradual ramps that the impact of an increase in the out years would not be as severe as it could be.” After 2018, the rise is “just based on investment returns and wage growth” Holt said, and becomes more “manageable.”   

Some aldermen worried whether 2015 property assessments might lead to a “double hit” for homeowners. Ald. Harry Osterman (48) said he wouldn’t want to approve a budget without a clearer picture from the Cook County Assessor, and Ald. Michele Smith (43) read from a prepared statement about a resident whose assessment jumped 77%. A rise in property value doesn’t necessarily mean an equal hike in taxes, Holt said, and property values are rising across the board.

When asked about the feasibility of a property tax rebate, should Springfield shoot down the Mayor’s exemption, Holt said any rebate program would force the city to find additional revenue to pay for checks to homeowners. The City would need to find an extra $15M to fund a rebate program for Chicagoans that make $35,000, and $40M to fund a rebate program for homeowners whose property is valued at $250,000 or less.

GARBAGE FEE - Mayor Emanuel’s proposed $9.50 a month garbage fee for homeowners is just a starting point, according to Budget Director Alex Holt, in response to persistent questioning over the fairness and enforcement from many Black and Latino Caucus aldermen.

The Department of Streets and Sanitation based the fee structure on the number of homes that rely on city run garbage collection, not the number of bins at each household. Streets and San doesn’t have an official bin count. “There is potential inequity there,” Holt said, adding that the city will keep the door open for a volume- or cart-based fee structure down the line. “That is going to take us some time to look at that and think about the structure to think about the implementation, and also to make sure that we are doing that in a way where we don’t have people incentivized to throw their garbage in the alleys or to put their garbage in their neighbor’s carts,” Holt said. 

South Side Ald. Anthony Beale (9) was one of the most vocal opponents of the proposed garbage fee, criticizing the city for moving forward on the plan without knowing the number of bins across the city. He asked why the City couldn’t fold the garbage fee into the property tax bill. Holt noted half of the City’s residents pay for private collection, which costs significantly more than that mayor’s proposed fee. “I hope we go through the amendment process, and you look to amend this, and put this garbage proposal right in the garbage,” Beale said.

The garbage pickup fee is one of few actionable items the city can take to raise revenue, Holt reminded aldermen throughout the day. The City chose to add the fee to the water bill, because roughly 96% of Chicagoans pay their water bill, Widawsky says. Ald. Leslie Hairston (5), the only person to vote against an end to free garbage pickup for residential buildings with four or more units, suggested those buildings be included in the $9.50 a month fee instead of hiring a private company to haul their garbage. In July, the City Council ended free pickup for multi-unit buildings in response to a 2014 Inspector General report that found the Department of Streets and Sanitation was wasting $3.3 million collecting trash from buildings that were no longer exempt under the city’s grandfather clause.

Aldermen continued to question Holt on garbage pickup as the meeting extended into the evening. Ald. Joe Moreno (1) suggested the city look to a pay-as-you-throw system, which Inspector General Joe Ferguson estimated could generate $125M in a 2011 report.

TIF REVENUE - TIF surpluses aren’t the answer to fund pension obligations, Holt told several aldermen who wondered if those funds could pay for pensions in lieu of the garbage and property tax fee.

“There’s a lot of conversation about TIF being the savior of our financial future, but for most neighborhoods, TIF is a source of community investment,” Holt said. Of $1.38B in TIF revenue collected in 2014, $1.24B was committed to capital projects, she said. 

The city projects a $113M TIF surplus for next year. $97M will come from freezing and sweeping the surplus revenue from four of the seven of the largest TIFs, all of which are located in the central business district. This means revenue collected but not committed to existing, planned or emergency infrastructure projects will be split between the City and the school district. Those four TIFs are Canal Congress, Chicago Kingsberry, Jefferson Roosevelt, and River West. The other three central TIFs–LaSalle Central, River South and Roosevelt Canal–didn’t report a surplus for next year, but will be included in the TIF sweep the following year.

Ald. Danny Solis (25) asked how much the city expects to recoup from expiring TIFs over the next four years. Holt said from now until 2019, the City expects to collect $2M in revenue from expired TIFs, with projections growing significantly after 2019 ($8M in 2020, $9M in 2021, and $17M in 2022). Those numbers are based on property values, and are subject to change.

PUBLIC SAFETY -  Police overtime will cost the City an additional $100M this year, Holt told Ald. Anthony Beale, who asked if CPD was stretching its overtime payment for the second year in a row. 

“Are we still paying $100M in [police] overtime?” Ald. Beale asked Holt. “Yes, [CPD’s] overtime projection for the end of the year is approximately $100M, $60M of which, roughly, is the regular overtime, extension of tour of duty, and court overtime.” The remaining $40M is associated with the City’s Expanded Anti-Violence Initiative, which concentrates police in high crime neighborhoods.

“Do you think that is an efficient way of running the police department knowing that murders and up and crime is up, but we’re still paying $40M in overtime?” Beale asked. While she said she couldn’t comment on police strategies, she could say from a budget perspective, the city can buy more policing hours with overtime than straight time. $10M in police overtime provides about 150,000 hours of police time, while straight time nets 90,000 hours. 

Ald. Nicholas Sposato (36), a former firefighter, and Ald. Chris Taliaferro (29), a former police officer, expressed skepticism about Mayor Emanuel’s proposal to move more than 300 cops off desk duty and on to the streets. Sposato equated the move to putting a housecat on the street, calling it, “the biggest bunch of crap I’ve ever seen.” Taliaferro called the proposed move, “smoke and mirrors.”

“I’ve seen that over the years, and many end up back inside. It’s not an actual number getting on the street,” Taliaferro said. “Unfortunately, it can be to the detriment of our community,” but said he would save his reservations for the budget hearing on police scheduled for October 6.

311 PRIVATIZATION - While many aldermen have fixated on $1M in savings estimated from outsourcing the City’s 311 system, replacing it would cost between $25 and $30 million dollars, Holt told aldermen Monday. That estimate prompted the City to look at whether outsourcing would be more cost-effective. The proposal came as a surprise to many aldermen, some of whom found out about it the night before the Mayor’s budget announcement. Comparisons to the maligned parking meter deal came soon after.

Ald. Scott Waguespack (32) made a point Monday to ask whether 311 outsourcing would fall under scrutiny of  a privatization ordinance championed by Ald. Roderick Sawyer (6) and Mayor Emanuel, which has not yet been called up in committee. The ordinance would require the city to make a clear case for why a proposed privatization would benefit the city, provide sufficient time for public debate before moving forward and establish an accountability and transparency framework. Holt told him she expected 311 privatization would be subject to the ordinance, but framed the proposal as a jumping off point for reform, and not a done deal. There are 72 call center and management employees at 311 still in the budget as of January 1. “We might not be looking at full outsourcing,” Holt said. Limited outsourcing or no outsourcing at all are both possibilities. “We’re interested in finding out what the options might be.”

Aldermen from different caucuses voiced opposition to the possible outsourcing, including Brian Hopkins (2), Chris Taliaferro (29), Pat Dowell (3), Leslie Hairston(5), and Scott Waguespack (32).

RIDESHARING FEES - Rideshare companies like Uber and Lyft can start picking up passengers from O’Hare and Midway airports starting January 1 if Council passes the Mayor’s proposed changes, Holt says. But aldermen like Ald. Pat Dowell (3), said Council should work to “level the playing field” between cab and rideshare drivers before then, by subjecting rideshare drivers to some of the same fees, standards, and licensing requirements cab drivers currently have to follow. Ald. Susan Sadlowski Garza (10) told Holt, “When you open up the airport to them in January, this is going to be a disaster for taxi drivers.”

The mayor’s proposal gets rid of ground transportation tax that taxis currently pay, subjecting cab and rideshare drivers a .50 per ride charge instead. Of that proposed $0.50 surcharge, $0.10 would go towards the wheelchair accessible fund, and $0.40 would go towards the city’s corporate fund. The proposal would also charge rideshare a bigger pickup and drop-off fee at airports than cabs currently pay, and would reduce the medallion transfer tax, Holt says.

Ald. Anthony Beale (9), chair of the Transportation Committee, said medallions “are pretty much useless” at this point, and suggested Holt work with the Law Department on a new proposal to get more revenue and “truly level the playing field.” He has favored a $1 surcharge on all rides with Lyft and Uber.

Among the dozens of Mayoral appointments to the City’s boards and commissions announced at yesterday’s City Council meeting we heard a familiar name: Ray Suarez. Mayor Emanuel introduced an ordinance appointing the former 31st Ward alderman to the Illinois International Port District Board, the policy making body for the city’s port and harbor. The nine member body issues construction permits and regulates the district’s facilities and waterways. Suarez would finish the unexpired term of Rev. Lynette R. Santiago, Co-pastor of the Christian Fellowship Flock Church, who resigned.

Unlike most city boards and commissions, the job comes with an annual salary of $20,000. Since the appointment requires approval from Ald. Anthony Beale’s (9) Committee on Transportation and Public Way, Suarez will have to make a trip to City Hall to get confirmed by his former peers.

Ward offices across the city have received hundreds of calls from constituents opposed to Ald. George Cardenas' (12) proposed penny-an-ounce tax on sugary drinks. The calls to aldermanic offices were prompted by an autocall to city households, which then give call recipients an opportunity to be transferred to their local alderman's office.

The Illinois Beverage Association’s Executive Director, Jim Soreng, confirmed that it engineered the astroturf lobbying. “It’s a city-wide effort in response to Ald. Cardenas’ proposal,” Soreng told Aldertrack. While he wouldn’t say which wards the group targeted, he did say robocalls were made to registered voters.

But unlike most robocalls, which consist of a recorded message, these calls immediately direct the recipient to the ward office after the call’s message completed. IBA would not provide the audio or script of the call, but ward offices Aldertrack contacted said most calls routed to them opposed the tax.

At least eleven wards reported receiving the calls, and we found that Latino, low-income and border wards were hit especially hard.

Kevin Lamm, chief of staff for Ald. Milly Santiago (31) says the their office received more than 150 calls on the issue in the past few weeks. Staff from the 11th, 15th, 17th, 18th, 20th, 22nd and 41st Wards all confirmed receiving waves of calls in the last month. And yesterday, a representative of the Chicago Coalition Against Beverage Taxes, visited Ald. Rick Munoz’s (22) ward office to drop off literature.

Earlier this week, Cardenas told Aldertrack he won’t pursue his plan in the City Council, because he's worried it could open the City up to a costly lawsuit. He said he and the Mayor agree it would be better for Springfield to pass the tax instead.

Forty-two aldermen signed on to Ald. Roderick Sawyer’s (6) resolution calling for a moratorium on new charter schools in Chicago. Given CPS’ financial woes, Ald. Sawyer said he doesn’t think it is in the City’s best interest to approve any of the 22 new charter school proposals currently awaiting consideration by the Chicago Board of Education. “Just a few years after CPS closed 50 public, neighborhood schools, and with our school system facing a continued funding crisis, the last thing we need is 22 new, privately managed charter schools added to the pool,” Ald. Sawyer was quoted saying in a press release.

The resolution was referred to the Committee on Education and Child Development, chaired by Ald. Will Burns (4), one of the eight aldermen not signed on as a co-sponsor. The other seven aldermen are: Ed Burke (14), who recently expressed interest in having a Noble Charter School in his ward; Willie Cochran (20); Walter Burnett (27), an outspoken charter school supporter; Carrie Austin (34), who was absent at yesterday’s meeting; Emma Mitts (37), who ran a tough campaign against a Chicago Teacher’s Union backed candidate; Michelle Smith (43); and Joe Moore (49).

Members of the City Council’s Black and Latino Caucuses are more concerned with the Mayor’s plan to slap a $9.50 monthly garbage fee on homeowners’ water bills than the proposed property tax hike plan, according to sources present at closed-door Caucus meetings yesterday.

Our sources say that at the Black Caucus meeting, aldermen were less concerned with the property tax hike, because most of their constituents are renters, or would fall under Mayor Emanuel’s proposed exemption for homes valued $250,000 and less. 

We were also told members of the Latino Caucus aren't thrilled with the garbage fee either, mainly because it would be added to a homeowner’s water bill instead of their property tax bill. By including the garbage fee on the water bill, the city can enforce the fee by shutting off the water if a homeowner refuses to pay.

And several members of the Paul Douglas Alliance, who met before the full Council meeting Thursday, signed on as co-sponsors to Ald. Joe Moreno’s property tax rebate plan, because they see it as a Plan B should the Mayor’s exemption plan fail in Springfield. 

But Mayor Rahm Emanuel doesn't think the two rebate plans introduced in Council yesterday will help much. When reporters asked the Mayor why he would rely on Springfield's help to get a property tax exemption instead of backing one of the aldermanic rebate plans, Mayor Emanuel said rebates add additional bureaucracy and still require a full payment up front, rather than the immediate discount an exemption offers.

Ald. Brian Hopkins (2) wants a new permit for all moving and delivery vehicles in the City. The fee structure would be broken down into two categories. A permit to park and load merchandise anywhere in the city would cost $20 a day, $20 a month, and $1,000 a year. A permit for vehicles that park outside the City’s central business district would cost $4 a day, $20 a month, $200 a year.

An ordinance introduced by City Clerk Susana Mendoza would offer a new all-zone parking pass for Realtors. The special city sticker would give licensed Realtors the ability to park in any residential parking zone during business hours (9 a.m.-9 p.m.). They would still be barred from parking near a sports stadium on game days or other special events. Realtors living in Chicago could get an annual sticker for $500. Those who commute into the city would have to pay an additional $200. In order to qualify for the pass, an applicant can’t have any outstanding debt owed to the city. 

On the cost saving side, Ald. Carlos Ramirez-Rosa (35) introduced an ordinance calling for a pay cut for City employees making $100,000 or more a year, contingent on the approval of Mayor Emanuel’s proposed property tax increase. According to the example provided in the ordinance, if there is a 0.8% property tax increase, an employee making an annual salary of $100,000 would see a $8,000 reduction in pay. When we tweeted out the ordinance, Finance Committee Legislative Analyst Chris Lentino, tweeted back: “Aldermanic salary dictated by State Law. Aldermen can opt to reduce salary by Municipal Law on individual basis, though” and referred Rosa to Municipal Code (65 ILCS 20/21-7) "...and his salary shall not be increased or diminished during his term of office." Aldermanic salaries for FY 2015 range between $105,939 and $117,333.

We compiled a list of some non-routine ordinances that will likely be voted on by the full Council today. The Mayor’s Tax Increment Financing surplus ordinance was discussed in Finance Committee this week, but Chairman Ed Burke held it in Committee after hearing a flurry of concerns from fellow aldermen.

Mayoral Ordinances

• Expanded Transit Oriented Development Guidelines: One of the biggest changes to the original proposal has to do with on-site parking requirements. Any developer building within a fourth of a mile (1,320 ft) of a CTA station and a half of a mile (2,640 ft) of a Metra station would need need to apply for a special use permit from the Zoning Board of Appeals if they want to completely eliminate on-site parking from their development plans. A 50% parking reduction is already allowed under the proposed ordinance. [Meeting Recap]

• Modifying City Treasury Investment Policies: According Treasurer Kurt Summers, this ordinance provides more transparency and accountability to the city’s investment policy by setting a minimum credit quality standard of Aa1 or better for the City’s investment portfolio. It also requires quarterly reports on the city’s investment portfolio to the City Council. (more details)

Aldermanic Ordinances

• New Mobile Food Vendor's License:  This is Ald. Roberto Maldonado’s (26) ordinance to bring mobile food vendors “out of the shadows” by establishing a $350 license to sell prepared food like tamales, elotes, and hot dogs on City streets. At the License & Consumer Protection Committee meeting, Ted Dabrowski of the Illinois Policy Institute estimated there are already 1500 food carts operating in the city selling 50,000 meals a year.  Between revenue from the $350 license fee vendors would pay, sales and income tax, and the penetration of food carts within the city going forward, Dabrowski says this change “could generate $2 to $8 million for the city.” [Meeting Recap]

• Wine Sales on the Chicago Riverwalk: Ald. Brendan Reilly (42) wants to make it legal for vendors to sell sealed, 750mL bottles of wine along the downtown Riverwalk during normal business hours (11am to 9pm), but since it is still illegal to consume alcohol along the Riverwalk, retailers can’t provide a corkscrew or drinking container with the purchase. [Meeting Recap]

Bond Issuances

• General Obligation Bonds (Max $500 million): The bonds will help restructure and pay down the city’s debt and reimburse the corporate fund for money taken out to pay previous debt. The bonds will have terms ending January 1, 2057.  Approximately $225 million will go toward restructuring purposes and the balance would be issued for savings.*

• Chicago O’Hare Airport Revenue Bonds (Max $2 billion): The bonds will help finance the O’Hare Modernization Program and other general airport repairs. The bonds are expected to be issued in October will be paid back from the O’Hare Fund.*

• Second Lien Wastewater Transmission Revenue Bonds: The original ordinance authorized $125 million to terminate the associated swaps. The substitute introduced in Committee adds a request for approval of $100 million in Illinois Environmental Protection Agency (IEPA) loans and $350 million dollars in inducement authority. IEPA loans are federal grants provided to states for sewer improvement projects.

*There was a divided vote on the bond ordinances at the 9/21 Finance Committee meeting. Aldermen Willie Cochran (20), Pat Dowell (3), Scott Waguespack (32), John Arena (45), and Gregory Mitchell (7) voted against the O’Hare and Chicago General Obligation bonds, but the ordinance passed.

Zoning

• New Viceroy Hotel, Gold Coast (2nd Ward): The Viceroy Hotel Groupwants to demolish the vacant Cedar Hotel in the Gold Coast so it can build an 18-story building with 180 hotel rooms, a restaurant on the ground floor, and an open green space on a 12,000 sq. ft. site. [Meeting Preview]

• 53-Story Office Tower, Loop (42nd Ward): Tishman Speyer is looking to turn the surface parking lot and surrounding vacant land along 130 N. Franklin St. into an angular, glass office high rise. Plans include ground floor commercial retail, a restaurant, a minimum of 140 on-site parking spaces and a large outdoor plaza.  [Meeting Preview]

• Half Acre Brewery Beer Garden, Ravenswood (40th Ward): The beer distributer plans to build a 35,000 sq. ft. brewery with an adjoining tasting room and full service kitchen on the first floor, and office space on the second floor of the existing property adjacent to the Rosehill Cemetery. [Meeting Preview]  

• Parkway East Project, Lakeview (44th Ward):  Boston-based Broder Diversey, LLC wants to build an 11-story residential tower near Diversey Harbor, with 56 dwelling units and commercial retail at the base. This is the big housing development next to Yakzies Bar. [Meeting Preview]

• New Whole Foods, Lakeview (44th Ward) The new location on 3201 N. Ashland Ave. is part of a large expansion plan the company unveiled last year to open 11 new stores across the US and Canada. Ashland Belmont, LLCwill construct a 79,500 sq. ft. store with 305 parking spots. [Meeting Preview]

• Residential town on former Ed Debevic’s Diner site (42nd Ward):  Robert Stone and Jeffrey Himmel are part of a joint venture to build a residential complex at the site of the Ed Debevic’s 50’s themed restaurant in River North. Plans include a 22-story residential tower with 253 units and neighboring two-story commercial building to the west.  [Meeting Preview]

• Proposed 6-story Mixed-Use Building Next to New 606 Trail (32nd Ward) Centrum Partners’ plans include commercial retail and a refurbished Aldi’s Supermarket at the base, with 95 residential units spread among the top four floors. The approximately 59,000 sq ft site will also include a 60 car surface parking lot for shoppers and a 62 car basement garage for residents. [Meeting Recap]

• Proposed Apartment-Office Space Complex in Ravenswood (47th Ward) Hayes Properties will rehabilitate a nearly one hundred year-old, four-story brick building on 4801 N. Ravenswood Ave. into a mixed-use apartment and office building. Plans include 36 residential units, a little over 90,000 sq. ft. of office space, and enough parking for 69 cars. [Meeting Recap]

• Proposed Fulton Market Office Building (27th Ward ) The applicant, SRI-ASW Green Owner, LLC and 219 Partners, LLC, an entity controlled by Shapack Partners’ founding principal Jeff Shapack, want to designate three properties as Business Planned Development. Developers plan to build a one story (5,100 sq ft) commercial building, restore existing buildings, and add a new 11 story office building with a rooftop penthouse and deck. The new office building will have ground floor retail, parking for 59 cars on the 2-5 floors, and loft-style offices on the remaining top floors. [Meeting Recap]

Intergovernmental Agreements

• Read Dunning Park Expansion (38th Ward): The agreement between the City and the Chicago Park District transfers 7.5 acres of adjacent city owned land for $1 to the Park District to help with the $3 million expansion plan. The Park will have a turf field for sports, 93 parking spots and a walking path that encircles the park. Construction is scheduled to be completed by next summer. [Meeting Recap]

• Hadiya Pendelton Park Expansion (3rd Ward): The agreement transfers the adjacent City-owned vacant land at 4323-4329 S. Calumet Ave to the Park District, so they can turn the former Buckthorn playlot to a two acre park. [Meeting Recap]

• Policing at CHA Buildings: “This is an expense neutral type of agreement that has been in place for an extended period of time,” Vice Chairman Jason Ervin explained at the Budget Committee meeting. “Ultimately, this is essentially CHA paying the City of Chicago for services it is rendering on the city’s behalf.” This agreement dates back to 1999, when CHA disbanded its police department. [Meeting Recap]

• Environmental Studies on CHA-owned Land: Deputy Commissioner for the Department of Fleet and Facility Management Kimberly Worthington said this agreement lets the city conduct federally-required environmental reviews of CHA projects funded by federal grants to ensure they are compliant with soil, contamination, noise and historic preservation guidelines. Under the agreement, CHA will provide $75,000 upfront to the City. The agreement expires in 5 years, but can be renewed upon mutual agreement. [Meeting Recap]

• Authorizing TIF funds for improvements at CPS schools: Agreements include Marine Leadership Academy at Ames School, Walter Payton College Preparatory High School, Franklin Fine Arts Elementary School, Cather Elementary School, Franklin Fine Arts Elementary School, and Budlong Elementary School.

Sale of City Owned Land/Lease Agreements

• Sale of Former Marconi Elementary School (28th Ward): United for Better Living Inc. submitted the highest bid ($100,000) for the site of now-closed 6,200 square foot, 55 year-old Marconi Elementary School in West Garfield Park. United for Better Living is affiliated with Allison United Foundation for Better Living, a non-profit founded by the late Corinthians Temple Church of God in Christ (COGIC) Bishop Bennie Allison. [Meeting Recap]

• Lease Agreement for J. Michael Fitzgerald Apartments (39th Ward): The ordinance approves a 75 year ground lease agreement between the City and Fort Lauderdale-based Elderly Housing Development & Operations Corporation (EHDOC) to help with the development of the J. Michael Fitzgerald Apartments, an affordable housing development for seniors located within the North Park Village Nature Center.  [Meeting Recap]

Miscellaneous

• Collective Bargaining Agreement: The Committee on Workforce Development approved a contract for 17 police communications operators in the City’s Office of Emergency Management and Communication. The term of the agreement is from July 1, 2012 to June 30, 2017, with a 1.25% raise for each of the first three years and a 1.5% raise for that last two years [Meeting Recap]

• Four class 6(b) Tax incentives: The Committee on Economic, Capital and Technology Development approved roughly $3.3M in property tax breaks over a twelve year period for Chicago-based companies looking to expand on dilapidated industrial sites. The class 6(b) real estate tax incentive is intended to reduce vacant industrial real estate in Cook County by providing businesses with a lower tax rate if they commit to rehabbing existing buildings or constructing new industrial property. These are the companies: Economy Packing Company (23rd Ward), REWL Venture, LLC (27th Ward), Wichita Packing Company (27th Ward), Primrose Candy Company (36th Ward). [Press Release] [Meeting Recap]

Appointments & Reappointments

• John T Hooker as the new Chairman of the Chicago Housing Authority Board of Commissioners. The retired ComEd executive received a lot of support from the members of the Committee on Housing and Real Estate when he testified at his confirmation hearing earlier this month. [Meeting Recap]

• Community Development Commission: Cornelius D. Griggs, Gwendolyn L. Butler, Celena Roldan Moreno, Philip A. Alphonse. Moreno is the wife of Ald. Joe Moreno (1) and he will likely invoke Rule 14 when it comes up for a vote.  [Meeting Recap]

• Chicago Police Board: John Simpson, Claudia Venezuela; Reappointment of William F. Conlon [Meeting Recap]

• Commission on Chicago Landmarks: Gabriel Ignacio Dziekiewicz, Carmen A. Rossi, Juan G. Moreno; Reappointment of James M. Houlihan, Rafael M. Leon, Mary Ann Smith, Richard L. Tolliver and Ernest C. Wong [Meeting Recap]

• Chicago Plan Commission: Laura L. Flores, Sarah E. Lyons, Juan Linares; Reappointment of  Doris Holleb, who was appointed to the Commission in 1986 by Mayor Harold Washington. She is the longest serving member on the Plan Commission. [Meeting Recap]

• Zoning Board of Appeals: Blake P. Sercye; Reappointment of Sol A. Flores and Jonathan T. Swain [Meeting Recap]

• Board of Examiners of Mason Contractors: Reappointment of Henry M. Leahy and Luciano Padilla, Jr.

• Human Resources Board: Karen M. Coppa [Meeting Recap]

• The Chicago Low-income Housing Trust Fund: LaToya M. Dixon, Elise Doody Jones, Bishop Horace Smith, M.D., Jennifer Welch; Reappointment of Sol A. Flores, Levoi K. Brown, Malcolm Bush, Wayne L. Gordon, Thomas J. McNulty, and Kristin K. Nance. [Meeting Recap]

• Chicago Community Land Trust Board: Eva M. Brown, Michelle Morales; Reappointment of Patricia Abrams, Joel Bookman, Timothy Hughes, Edward H. Jacob, Guacolda E. Reyes, William W. Towns, Jeffrey Wright, and Marva E. Williams. [Meeting Recap]

Former 33rd Ward aldermanic candidate Tim Meegan and a dozen members of his new independent political organization, 33rd Ward Working Families, showed up Tuesday night at Ald. Deb Mell’s (33) new ward office open house on Irving Park Road. According to Nick Burt, a member of Meegan’s new organization, the group wanted to talk to Ald. Mell about some local policy issues like affordable housing, a charter school moratorium, and the city budget, but were instead welcomed by four police officers. Mell strongly denied that the police officers were called, and were instead already at the event.

Burt alerted Aldertrack about the meeting after we mentioned in Tuesday’s newsletter that we spotted Meegan in one of the open house pictures Mell posted to her Facebook page.

It was the first time the 33rd Ward Working Families reached out to Ald. Mell, since they created the group after losing the election, says Burt. Asked if Mell’s staff recognized Meegan, Burt said “probably,” but noted none of their members had any identifying markers.

But Ald. Mell says she didn’t call the cops when the group showed up. She says the police, all of whom she knew from the ward’s CAPS meetings, were already at the event, and had walked into the office to say goodbye to the Alderman around the same time as Meegan and his group showed up. “There is no way I would ever call the police on a constituent,” Mell told Aldertrack.

Ald. George Cardenas (12) told Aldertrack yesterday that he won't put his controversial penny-per-ounce tax on sugary drinks up for a vote in the City Council and will instead look to Springfield to pass the tax. 

Cardenas says he and the Mayor have agreed it would be better to get Springfield to pass the tax than push it through the City Council, which could expose the City to a costly lawsuit from the beverage industry. “Can we go forward with [the tax plan]? Yeah. Can it be challenged in Court? Yeah,” he said.

A similar proposal to add a penny-per-ounce tax on sugary drinks has already been introduced in Springfield. But Cardenas said the sweetened beverage plan will be part be a "whole laundry list" of tax proposals that would need state approval, such as a congestion pricing tax and a profession services tax, according to Cardenas.

“Chicago is thriving, but the fiscal challenges before us are significant,” Mayor Rahm Emanuel told a packed City Council Chamber as he began his fifth budget address that includes a $544 million property tax increase to be phased in over four years.

[Full Speech – Full Budget Document]

The proposed $7.84 billion budget will “finally begin to reflect the true annual cost of operating the City,” the Mayor assured aldermen, as most of them focused on printed copies of his speech instead of looking at Emanuel as he made his remarks.

A press release from the Mayor Monday laid out much of what to expect yesterday, but there were still a few surprises, including a plan to privatize the City’s 311 call system, adding $1 million in savings. However, the expected items mentioned in the speech were:

• $170 million in savings and reforms, like putting street sweeping on a grid system saving $3 million, reducing non-personnel costs by $21 million and healthcare savings totaling $40 million.

• $60 million from a $9.50 monthly garbage collection fee.

• $60 million from rideshare and taxi fees.

• $1 million from a tax on e-cigarettes.

Posing the almost unimaginable scenario of police and fire cuts, and reducing garbage collection from once a week to twice a month, Emanuel socked Council with his property tax increase.

The Mayor’s budget calls for a phased-in property tax increase starting with an additional $318 million this year, $109 million in 2016, $53 million in 2017, and $63 million in 2018. All of the additional revenue will fund the City’s police and fire pension obligations.

The Mayor’s budget anticipates the FY2016 property tax levy will bring in a total of $1.26 billion, with the largest share of that money, 36%, earmarked for the Policemen's Annuity and Benefit Fund (PABF). 15% of the levy will go toward the Firemen’s Annuity and Benefit Fund (FABF).  

The 2016 proposed budget recommends a total $978.3 million contribution to the city's four pension funds, more than doubling last year’s contribution of $421.1 million. The pension payment will be funded with $786 million in revenue from property tax bills and $192.3 million from other sources.

The pension payments are based on an amended timeline that has yet to be approved by Springfield. Under current state law (Public Act 96-1495) the City’s Police and Fire pension plans must achieve a 90% funded ratio by the end of 2040. The Police Pension is only 26% funded with a $11.73 billion unfunded pension liability, and the Firemen’s Pension is only 23% funded with a $4.513 billion unfunded liability, according to the City’s 2015 Annual Financial Analysis.

The Mayor’s proposed legislation in Springfield, SB777, would stretch pension payments through 2020, in addition to pushing the 90% funding requirement to 2055. Although it has passed the Illinois House and Senate, it has not been sent to the Governor for consideration, as Rauner has not indicated if he will sign it or not. If enacted, the proposed pension payments in the Mayor’s budget would remain the same. If it fails, the city would be forced to make a bigger payment next year and even bigger ones in the future.  

The Mayor is pushing to expand the property tax exemption for homeowners whose properties are valued at $250,000 or less. The plan needs approval from Springfield, and Mayor Emanuel noted in his budget address that Illinois Speaker Mike Madiganand Senate President John Cullerton both agreed to move the legislation forward with hearings on the plan scheduled for later this week.

Finally, on debt, the city is doing a bit less than previous years. While next year’s proposed budget appropriates $593.5 million to pay down general obligation debt, last year, the city spent $623.9 million to pay down general obligation debt.

The City Council will hold hearings on the Mayor’s budget plan through October before a scheduled vote on October 28th.

Chicago homeowners living below 400% of the federal poverty level would be eligible for a property tax rebate under a proposal unveiled by the Council Progressive Caucus Monday afternoon at City Hall. The third property tax exemption or rebate program proposed this year, it joins plans offered by Mayor Rahm Emanuel and Ald. Joe Moreno (1) earlier this month.

In order to qualify for the rebate, a family of four would have to have a gross annual salary of $97,000, a family of two would have to report an annual salary of $63,000, and a single homeowner would have to have an annual salary of $47,000.

Ald. Carlos Ramirez-Rosa (35), the lead sponsor of the tax relief plan, says the rebate would provide relief for homeowners living in communities whose property values have significantly increased over the past few years.

“You would be protected, regardless of the value of your home,” said Rosa using the example of an elderly homeowner living off a monthly Social Security check. Seniors in a rapidly gentrifying neighborhoods shouldn’t have to pay more in property taxes, he said.

Under the proposal authored by Ramirez-Rosa, Ald. Scott Waguespack (32) and Ald. John Arena (45), the City’s Chief Financial Officer would develop an application and process for homeowners to apply for the rebate. The homeowner would apply for an application to participate in the program with the Tax Assistance Center within the City’s Budget Office. The ordinance includes a two-year sunset clause, so the city can amend the program based on participation.

The Progressive Caucus’s plan is based on an earlier property tax rebate program Mayor Richard M. Daley implemented in 2010. When challenged by reporters at yesterday's presser that the Daley plan had a low participation rate, Waguespack said Daley’s plan was “hardly publicized” and the rebate came in the form of a cash card. It would be up to local aldermen to make sure homeowners are aware of the rebate, he said.

In addition to announcing the rebate program, Ald. Arena said the City should do more to crack down on what he said was “hundreds of thousands of dollars” in lost property tax revenue from the City’s central business districts. Accusing businesses of hiring expensive lawyers to fight property tax bills, and thus forcing homeowners to pick up the tab, Ald. Arena suggested the City’s Law Department increase the number of lawyers it has on hand to address property tax rebates submitted by city businesses.

The Progressive Caucus’ plan, as well as Ald. Joe Moreno’s (1) rebate plan for household incomes below $100,000, will be introduced at Thursday’s full City Council meeting. In a press release yesterday afternoon, the Mayor said he plans to seek an increase of existing property tax exemptions through legislation in Springfield.

It was a quick budget meeting with Vice Chairman Jason Ervin (28) taking over the reins from Budget Chairman Carrie Austin, who has reportedly been sick for some time. The committee approved two intergovernmental agreements with the CHA: one for additional police services, and another for conducting federally mandated environmental reviews.

Aldermen in attendance (committee members in bold): Vice Chairman Jason Ervin (28), Roderick Sawyer (6), Michelle Harris (8), Anthony Beale (9), Raymond Lopez (15), David Moore (17), Willie Cochran (20), Michael Zalewski(23), Michael Scott Jr. (24), Roberto Maldonado (26), Walter Burnett Jr. (27), Ariel Reboyras (30), Milly Santiago (31), Scott Waguespack (32), Emma Mitts (37), Brendan Reilly (42)

Ryan Elligan, attorney for the Chicago Police Department, provided a brief overview of the proposed intergovernmental agreement between the Chicago Housing Authority and the City’s Police Department. This agreement has been going on since 1999, the year CHA disbanded its police department, according to Elligan.

But Ald. David Moore (17), a former CHA employee, said he didn’t think it was appropriate for the committee to approve the agreement without being given a breakdown of cost.

“There are no figures here or anything like that,” Ald. Moore explained. “I am trying to see the cost for the past ten years, and if that amount has gone down. We tore buildings down, so the cost of policing should have gone down.”

“This is an expense neutral type of agreement that has been in place for an extended period of time,” Vice Chairman Jason Ervin responded. “Ultimately, this is essentially CHA paying the City of Chicago for services it is rendering on the city’s behalf.”

Ervin said delaying approval of the agreement wouldn’t be in the “best interest of public safety” and Ald. Moore could get the numbers from the police department through the Committee later that week.

This prompted Ald. Brendan Reilly (42) to defend Ald. Moore’s request, asking that the committee get the information through the chair by the end of the day. Ervin said they wouldn’t be getting those numbers until Thursday, the earliest, when the agreement must be approved by the full City Council.

Elligan was however able to provide some details, noting that CHA’s agreement with the police department is capped at $8 million this year, up from the average annual cost of $6 million, which has been the standard benchmark payment for the past decade. According to Elligan, CPD has diverted policing from the old high rise public housing buildings to the low and midrise buildings still in existence. The $2 million increase is not a result of more police officers at CHA buildings, as that number has actually declined, according to Elligan. It’s the gradual increase of police salaries that are contributing to the added costs.  

Kimberly Worthington, Deputy Commissioner for the Department of Fleet and Facility Management (FFM), testified on behalf of the second intergovernmental agreement the Budget Committee approved. Worthington said City Council approval was needed, so the city could conduct federally-required environmental reviews of CHA projects funded by federal grants to ensure they are compliant with soil, contamination, noise and historic preservation guidelines. Under the agreement, CHA will provide a $75,000 upfront payment to the City. The agreement expires in 5 years, but can be renewed upon mutual agreement.

The City Council Zoning Committee approved an amended version of Mayor Rahm Emanuel’s proposed expansion of the city’s Transit Oriented Development (TOD) guidelines, which gives developers incentives to build near the city’s public transit stations.

Aldermen Present (committee members in bold):  Chairman Danny Solis (25), Vice Chairman James Cappleman (46), Joe Moreno (1), Anthony Beale (9), David Moore (17), Matt O’Shea (19), Walter Burnett Jr. (27), Deb Mell (33), Gilbert Villegas (36), Brendan Reilly (42), Tom Tunney (44), John Arena (45), Ameya Pawar (47).

Aldermen, real estate developers, land use attorneys, and community organizers packed Room 201A (Budget and Finance were holding back to back meetings in the City Council Chambers), as the City’s Zoning Administrator, Patti Scudiero debriefed the room on the last minute changes the Mayor’s Office made to the original TOD-expansion plan the mayor introduced at the July City Council meeting.

Zoning Chairman Danny Solis (25) tabled a vote on the original proposal at the last zoning meeting, citing the need for revisions.

One of the biggest changes to the original proposal has to do with on-site parking requirements. Any developer building within a fourth of a mile (1,320 ft) of a CTA station and a half of a mile (2,640 ft) of a Metra station would need need to apply for a special use permit from the Zoning Board of Appeals if they want to completely eliminate on-site parking from their development plans. A 50% parking reduction is already allowed under the proposed ordinance.

Developers who want to completely eliminate on-site parking would have to prove getting rid of parking wouldn’t impact the surrounding neighborhood, by proof of plans to promote car alternatives. This could mean more bike racks and parking spaces for car sharing companies like Zipcar.

Calling parking requirements a sometimes “explosive issue,” Ald. Tom Tunney (44) questioned whether the zoning board should be involved in the review process for TOD sites at all. He said the change might remove aldermanic involvement in local zoning issues, a key component of an alderman’s power in a ward. Aldermen are allowed to testify and submit evidence supporting or denouncing applications that go before ZBA, but it is the four-member panel that gets the final say in whether a special use permit will be granted or denied.

Tunney was also concerned about further burdening the zoning board, which currently has a three-month backlog of applications. At the ZBA’s monthly meeting in August, Chairman Jonathan Swain had to schedule deferrals for December, because September, October and November slots are completely booked.

In her response to Ald. Tunney’s concerns, Scudiero noted ZBA is the appropriate and legal channel to discuss parking requirements, because their decisions are “fact-based” and they are currently the only zoning body allowed to dole out special use permits to eliminate on-site parking.

The second major change to the original TOD expansion plan allows for up to 100% efficiency units in new housing developments located within one block of a CTA or Metra station. Scudiero said over the past year, many of the housing development projects within a block of transit prefer these smaller units.

“[This change] would mean that a project could reduce their parking, increase the amount of efficiency units, and get smaller, more affordable units closer to the train station, which we believe is the most necessary spot,” Scudiero explained.

The third change to the original ordinance has to do with filing requirements for TOD-designated projects. Developers that wish to take advantage of the increases to building height and floor-area-ratios (FAR), would have to file their request as a Type 1 zoning application instead of a planned development.

Calling “Type 1” applications a “mini planned development”, Scudiero said the filing changes allow for more transparency to and public review of TOD projects, without burdening developers with an additional five months added to the review process. All Planned Developments must go before the Plan Commission before the City Council Zoning Committee can vote on them. The Commission hears an average of five PD plans per month.

While Type 1 applications don’t require Plan Commission approval, these applications do require additional information from developers, including a “narrative zoning and development analysis” describing floor-area-ratios, density (the lot area per dwelling unit), off-street parking, and building height. Type 1 applications must also include drawings, photographs and/or plans illustrating the proposed building’s scale in relation to nearby buildings, and measurements detailing adjacent sidewalks, parking, loading areas, and landscaping plans.

All of the large scale zoning applications approved at the Plan Commission’s monthly meeting last Thursday will be taken up at today’s zoning meeting (link to Friday’s Plan Commission Roundup). Zoning applications that recently got the green light from the Plan Commission include: a new mixed-use residential housing complex overlooking the new 606 Bloomingdale Trail, and plans to add office space in Fulton Market and Ravenswood.

The committee will also take a second look at the Mayor’s proposed changes to transit oriented development (TOD) regulations and a proposal to create a special liquor license for parties held at industrial venues. Zoning Chairman Danny Solis(25) deferred a vote on both items at the beginning of the last Zoning meeting.

The Mayor’s TOD changes build upon his original 2013 TOD ordinance by expanding the size of TOD zones, eliminating all parking requirements, and adding new incentives for affordable housing.  The TOD ordinance the Mayor introduced at the last City Council meeting more than doubles the maximum distance required for development projects near CTA and Metra stations to 1,320 ft, up from the 600 ft currently required in the City’s zoning code.

Developers who commit to making 100% of units affordable would get to expand the floor-area-ratio (FAR), which is the building floor area divided by the total gross area of the lot, from 3.5 to 4.0. TOD projects in business, commercial, manufacturing, and downtown zoned areas wouldn’t have to provide any on-site parking under the proposal. In lieu of parking, developers would have to beautify the surrounding open space with trees and shrubbery, outdoor seating, wider sidewalks or additional lighting. If approved in committee tomorrow and by the full City Council at the end of the month, the changes would apply to all zoning applications submitted on or after November 1, 2015.

In addition to the TOD reforms, there is Mayor Emanuel’s proposed ordinance creating a private event license for large parties hosted at industrial venues. The license fee would be based on the number of expected attendees, ranging from $700 to $6,600.

The Finance Committee will be asked today to approve the issuance of additional general obligation bonds, a maximum issuance of $500 million to help pay old debt come due and push existing debt into the future. There is also a second bond issue on the agenda, an ordinance requesting City Council permission to approve up to $2 billion in Chicago O’Hare International Airport General Airport Senior Lien Revenue Bonds, in addition to a request from the Department of Planning and Development to issue Multi-Family Housing Revenue Bonds for the Lawn Terrace Preservation Project and the Paul G. Stewart Apartments Phase III Tower Project. Cities approve these federal bonds to help finance the construction of multi-family housing projects catered to low-income families or elderly residents.

The City Council meeting calendar lists a public hearing on the O’Hare bonds. Pursuant to the requirements of Section 147 (f) of the International Revenue Code of 1986, the City must hold a public hearing, known as a TEFRA Hearing, before the full City Council can approve the issuance of these types of bonds. In past meetings, Finance Chairman Ed Burke (14) had read the statement announcing the hearing and then adjourn the meeting on the hearing within the next five minutes, because there were rarely members of the public present to testify. 

Noticeably missing from the agenda is an ordinance requiring more transparency and accountability from banks that hold the city’s money. The ordinance was introduced in June and is supported by the Mayor, City Treasurer, and Progressive Caucus, but has yet to be brought up in Committee. Last week, several members of the Progressive Caucus held a press conference demanding Chairman Burke add it to the agenda and accused the banks of putting pressure on Burke to keep it buried in committee. The ordinance would change the RFP process the city uses to select banks to hold its cash, in addition to requiring regular reports from banks detailing how it is investing in Chicago communities.

The Chicago Plan Commission quickly approved Mayor Rahm Emanuel’s plan to sell four city-owned parking lots in River North to help close next year’s budget gap.

The $12.4 million sale was negotiated through a public, two-phase bidding process held over the summer and the City got 60% more than the appraised value for the sites, according the Mayor’s office.

Three of the four surface parking lots will go to the Belgravia Group, one will go to the Morningside Group, and all of the lots will be redeveloped for residential use, according to the application documents provided at the Plan Commission meeting (by address: 366 W. Superior St. / 356 W. Huron St. / 356 W. Erie St. / 366 W. Erie St.)

The applications were approved with the rest of the negotiated sales on the agenda in the first ten minutes of the meeting, but the plans will still need approval from the City Council Committee on Housing and Real Estate before heading to the full City Council for a vote. (It's unlikely Housing will have another meeting before the full City Council meets next Thursday, as they have already met twice in the last two weeks).

Ald. Tom Tunney (44) was the only commissioner to express concern over the sale, calling the lots “huge zoning...developable sites.” He asked Commissioner Patti Scudiero, the City’s Zoning Administrator, to provide additional details about the current zoning designation, the price per square footage and why the letter of support from the local alderman, Brendan Reilly (42), wasn’t included in the zoning packet.

Scudiero said Ald. Reilly sent the letter earlier that day, and it had yet to be incorporated into the packet. She added that one of the properties is within the boundaries of an existing planned development, and the other three are zoned as Downtown districts.

“Well, if they are parking lots, I think we will see them very quickly with a request for a big development,” Tunney replied, laughing, as a lot of the downtown development plans that go before the Plan Commission are on former or current surface parking lots.

After going through the negotiated sales, the Commission moved on to the big ticket items (Section D). There was little public testimony, except from City Council fixture George Blakemore and Bob Israel, president of Save Our Community Coalition. Israel usually asks developers about their plans to hire minority contractors.

The proposed residential building across the new, elevated 606 Bloomingdale Trailgot the most discussion time. Here are the highlights:

Approved: Proposed 6-story Mixed-Use Building Next to New 606 Trail - 32nd Ward
1749 N. Milwaukee Ave. | O2015-5371 | Introduced: 7/29/2015

There was great deal of questions regarding this application, mainly from Ald. Walter Burnett (27), a member of the Commission, who wanted to know more about the Department of Planning and Development's plans to address what he called a mass “land grab” of developable property around the new elevated 606 Bloomingdale Trail. Ald. Burnett recalled a trip he made to New York City with former DPD Commissioner Andrew Mooney to see how New York was handling development around the High Line Park, which the 606 is modeled after.

“Currently, we do not have any policies scheduled for the 606 trail,” DPD’s Noah Szafraniec responded, “but we did put the applicant in touch with the Trust for Public Land, and they have had several meetings with them about how to help the trail be successful in the future.”

Burnett said in New York City developers building around the Highline will pay for public amenities like bathrooms and entrances to the elevated trail, and in return, the city lets them build taller. “I just wanted to mention that, because maybe we might want to think about that in the future,” Burnett explained. “So, maybe we can make some deals and get a little more out of it for the public.”

Centrum Partners is proposing to build a six-story, residential and commercial building overlooking the newly opened elevated trail. The subject property is centrally located on Milwaukee Avenue between the Damen and Western CTA Blue Line stops, and the Leavitt street frontage is across the street from one of the entrances to the trail.  The joint venture between Centrum Partners and McLinden Holdings, LLC includes commercial retail, a refurbished Aldi’s Supermarket at the base, and 95 residential units split among the top four floors. The approximately 59,000 sq ft site will include a 60 car surface parking lot for shoppers and a 62 car basement garage for residents.

The architect, Howard Hirsch, said the project went through numerous revisions as a result of local community concerns, eventually coming to an agreement with neighbors to downscale to 95 units and reduce the size of the top floor. Hirsch said they “significantly increased the landscaping” as well. John McLinden, with Centrum Partners, said they are coordinating the landscaping with DPD and the Public Land Trust, but will foot the bill for any new public amenities added on or around the elevated trail.

But Centrum won’t add any affordable housing units on site. The Affordable Requirements Ordinance (ARO) requires 10 affordable units or a cash payment of $1 million to the Affordable Housing Trust Fund ($100,000 per affordable housing unit not included). Developers chose the payment, which Ald. Burnett found disappointing.

“From what we have been reading in the media, the property values in the area are exploding, which is a good thing, but we need not forget about folks who can’t afford to live in these communities as they explode and we need to keep that under consideration,” Burnett said, suggesting that DPD consider additional bonuses for developers who commit to adding affordable units around the 606.

Ald. Scott Waguespack (32), whose ward encompasses the site, said he was mostly glad that the Aldi’s was staying, adding that the developers decision to keep the supermarket is why residents were in support of the project. He also noted that there won't be much more development on that side of the 606, because there isn't a lot of available land left.

Approved: Proposed Apartment-Office Space Complex in Ravenswood - 47th Ward
4801 N. Ravenswood Ave. | O2015-5333 | Introduced: 7/29/2015

The Plan Commission approved an application to downzone 1.735 acres in the Ravenswood Industrial Corridor to facilitate the rehab of an old, four-story manufacturing and office building. According to the applicant’s attorney, Warren Silver, with the Silver Law Office, the subject building, built in the 1920s, has always been used for office space. Hayes Properties wants to transform the nearly century-old property into a mixed-use apartment and office building with 36 apartment units, a little over 90,000 sq. ft. of office space, and enough parking for 69 cars. Silver called it a great site for transit oriented development (although the application isn’t classified as a TOD). The property is on the Northeast corner of Lawrence & Ravenswood Ave., adjacent to the METRA Union Pacific Railroad tracks. There aren’t any plans for retail, but the developers are considering adding a daycare facility on site.

Hayes acquired the building in 2014 after the property’s former tenants, Newark Corporation, an electronic company, relocated to the West Loop. The $6 million rehab is expected to create 20 construction and 260 permanent jobs.

Approved: Bucktown’s WhirlyBall Seeks Rooftop Patio - 32nd Ward
1823 W. Webster Ave. | O2015-4633 | Introduced: 6/17/2015

The Plan Commission approved a downzone so the WhirlyBall in Bucktown can serve liquor on their second floor rooftop patio. Samuel Elias, the owner of three WhirlyBall amusement centers, applied for a downzone from a Manufacturing district to a Neighborhood Commercial District to permit outside use of the existing patio at the chain’s new 50,000 sq. ft. headquarters, located directly off the Kennedy Expressway. WhirlyBall is a sport that combines lacrosse, basketball and bumper cars. The indoor recreational facilities are popular for group events and alcohol is already served inside the building. “[The patio] has a beautiful view of downtown Chicago, customers of the company certainly want to be able to eat and drink out on that patio. It’s a very nice amenity,” said Elias’ attorney, Jim Griffin, with the law offices of Schain, Banks, Kenny & Schwartz, Ltd. Griffin said his client will apply for a special use permit to serve the alcohol once the downzone is approved by the City Council. Plans also include the construction of an off-site parking lot for 120 cars. No one signed up to testify on the application.

Structured Development Wants to Add more Retail near the Clybourn Corridor - 27th Ward
1450 N. Dayton St. | O2015-1357 | Introduced: 3/18/2015

Structured Development, the real estate firm behind the massive New City retail development project in the Clybourn Corridor, got the green light from the Plan Commission to demolish the three existing buildings along Dayton Street in the Halsted Triangle to construct one large, four-story building that will be half office space (110,000 sq ft) and commercial retail (103,000 sq ft).

Plans drafted by Chris Tokarz, with RTKL Architects, include a multi-level, open air parking structure for 550 cars located behind the building.  According to the applicant’s attorney, Nick Ftikas, with the law offices of Sam Banks, the retail space will take up the first two floors, and the offices will be on the top two floors. Structured Development is still looking for an anchor tenant to occupy the space.  

Commissioner Tunney was concerned that the the parking garage was a bit large for such a congested area. Structured Development’s Jeff Burda said that large retail sites need a lot of parking and added that their New City development has mediated the car congestion by adding a new street, Schiller Street, connecting Old Ogden Avenue and Clybourn Avenue to Halsted Street.

Structured and Big Deahl Productions Inc. filed a joint application under the name Big Deahl, LLC to establish a business planned development for the triangle shaped lot. The area is currently zoned as a Commercial district (C3-5), so the office space is allowed, but the retail component is not, which is why the application needed approval from the Plan Commission. Four people testified on the topic, two against, two in favor.

Approved: Proposed Fulton Market Office Building - 27th Ward
213-223 N. Peoria St. | O2014-8814 | Introduced: 11/5/2014

While this was the oldest application on the agenda, it is the first Fulton Market development plan to go before the Plan Commission since the City Council officially designated the neighborhood as a Landmark District on July 29. The applicant, SRI-ASW Green Owner, LLC and 219 Partners, LLC, an entity controlled by Shapack Partners’ founding principal Jeff Shapack, got approval from the Plan Commission to rezone and designate three properties as Business Planned Development.

The draft plan is divided into three subareas A, B, and C. Subarea B is the only property located within the Fulton Randolph Market District and the only property with an existing structure, a three and six story building that was formerly occupied by the Amity Packing Company, according to the applicant’s attorney, Richard Klawiter, with DLA Piper. Klawiter said the property has been “historically renovated to accommodate a ‘we work’ shared office space concept” and is designated as a contributing building to the historic landmark district. Subareas A and C are currently surface parking lots located in the Kinzie Industrial Corridor TIF District. Developers plan to build a one story (5,100 sq ft) commercial building in Subarea A, restore the existing buildings in Subarea B, and add a new 11 story office building with a rooftop penthouse and deck in Subarea C. The new office building will have ground floor retail, parking for 59 cars on the 2-5 floors, and loft-style offices on the remaining top floors.

Shapack Partners acquired the 13,000 sq ft parking lot on 213-223 N. Peoria St. in 2013, and the vacant double wide parking lot on 217-219 N. Green Street in 2014.

Adjacent Neighbors Sales

• 2713 W. Jackson Boulevard (27th Ward) - The Commission approved the sale of the 2,090 sq ft lot to Megan Hammaser for $2,000. The property is valued at $11,500.

• 4832 S. Princeton Ave. (3rd Ward) - The Commission approved the sale of the 3,240 sq ft lot located in the Fuller Park Community Area to Karina Paredes for $1,000. The lot is valued at $4,500.

• 12617 S. Saginaw Ave (10th Ward) - The Commission approved the sale of the 3,123 sq ft lot located in the Hegewisch Community Area to Karla Ruzich for $1,000. The lot is valued at $6,250.

• 40 N. Francisco Ave. (27th Ward) - The Commission approved the sale of the 875 sq ft lot in the East Garfield Park Community Area to Julia M. Brown for $1,000. The lot is valued at $6,250.

Other Negotiated Sales

• 11932 S. Wallace St. (34th Ward) - The Commission approved the sale of the 3,083 sq ft lot in the West Pullman Neighborhood to George W. Pearce, Sr. for $1,000, which is the appraised value.

• 6401, 6405, 6415-6427 South Stewart Ave (20th Ward) - The Commission approved the sale of six parcels of city-owned land (approximately 34,000 sq ft) in the Englewood neighborhood to St. Bernard Hospital so the hospital can expand their existing parking lot. The parcels will be sold at their appraised value ($6,800).
• 1343 W. 51st Street (20th Ward) - The Commission approved the sale of an approximately 3,100 sq ft vacant lot in the New City Community area to Arturo Hernandez and Avelina Guzman for the appraised value ($7,000).